Nokia to get 'huge' payments from Microsoft

PETER SVENSSON, AP Technology Writer

The CEO of Nokia says the company will get "huge" payments from Microsoft to use its Windows Phone 7 software for smart phones and ditch its current software.

Nokia Corp., the world's largest maker of phones, and Microsoft Corp. announced their alliance Friday. Both investors and employees reacted with dismay: Nokia's stock dived 14 percent and Finnish employees chose to use the flex time and go home early that day.

On Sunday, a day ahead of the Mobile World Congress trade show in Barcelona, Nokia CEO Stephen Elop said that apart from the benefits of the alliance that were laid out Friday, Microsoft is paying Nokia an undisclosed but large amount to switch to Windows Phone 7 and contribute some of Nokia's phone services, like mapping software.